Import scrap prices in India have showed only marginal changes amid inactive trade conditions, with buyers pushed to the sidelines and unwilling to restock imported raw materials against the backdrop of declining finished steel prices, the steady depreciation of the local currency and the increasing landed price of scrap, SteelOrbis learned from trade and industry circles on Wednesday, August 7.
Ex-UK/Europe containerised shredded scrap have been quoted in the range of $410-420/mt CFR Nhava Sheva port in the west, compared to $413-420/mt CFR a week ago, and ex-UK HMS scrap was unchanged at $385-390/mt CFR, but no trade for either grades were confirmed in the market. Market sources said that a gap exists between offers and bids for shredded as buyers are looking for not above $400/mt CFR. Liquidity problems and heavy monsoon weather, with cheaper sponge iron also being available in the local market, remain the main reasons for no activity in the scrap market.
“There are no buyers as secondary mills do not have any appetite to restock raw materials in the wake of declining long product prices and having reduced plant capacity utilisations. Sellers are not pushing deals by lowering prices either, leading to stalemate trading conditions,” a Mumbai-based trader said.
“The Indian rupee is close to touching INR 84.00 to the US dollar after hitting a new historical low of INR 83.90 to the dollar over the past week. This increases the landed price of imported scrap and secondary mills are not in a position to either absorb the higher cost or pass it on to consumers amid very low demand and prices in the market,” he said.